What does Termination Right mean in the music industry?

Termination Right Definition | Music Industry Glossary

In-Depth Explanation

Termination right (also called reversion right or the 35-year rule) is a provision in U.S. copyright law that allows authors or their heirs to reclaim ownership of a copyright 35 years after granting it to another party. This right, codified in Section 203 of the Copyright Act, lets creators undo transfers and licenses they signed early in their careers, regardless of what the contract says.

How Termination Rights Work

Congress added termination rights to the 1976 Copyright Act specifically because it recognized that creators often sign away their rights before anyone knows the true value of their work. A 20-year-old songwriter who signs a publishing deal for a few thousand dollars may write a catalog worth millions decades later. Termination rights give that songwriter a second chance.

Two Separate Provisions

There are two termination provisions in U.S. copyright law, and they apply to different eras of transfers:

Section 203 applies to transfers executed on or after January 1, 1978 (when the 1976 Act took effect). The termination window opens 35 years after the transfer and lasts for 5 years (years 35 through 40).
Section 304(c) applies to transfers executed before January 1, 1978, under the old 1909 Copyright Act. The termination window opens 56 years after the copyright was originally secured and lasts for 5 years.

Both provisions share the same fundamental mechanism: the author (or their heirs) can serve a notice of termination, and the copyright reverts back to them. The original grantee cannot stop it. No contract clause can waive this right. Any agreement that says "the author waives their termination right" is void under federal law.

Who Can Terminate

The right belongs to the author. If the author is deceased, the right passes to the author's surviving spouse and children. If there is no surviving spouse or children, it passes to the author's executor, estate, or next of kin. In the case of jointly authored works (like a song with two co-writers), each author (or their heirs) can terminate their own share independently.

The Notice Requirements

Termination is not automatic. The author or heirs must serve a written notice of termination on the grantee (the publisher, label, or other party) no earlier than 25 years and no later than 10 years before the effective termination date. The notice must be recorded with the US Copyright Office.

This means planning ahead is essential. If your 35-year window opens in 2030, you must serve notice between 2020 and 2025. Missing the notice deadline means losing the right to terminate.

The Work for Hire Exception

Termination rights do not apply to works made for hire. If you created the work as an employee within the scope of your employment, or if the work qualifies as a work for hire under a signed agreement, you cannot reclaim it. The employer owns the copyright permanently. This is why labels and publishers sometimes try to reclassify works as work for hire to avoid termination claims.

Real-World Example

A songwriter signs a full publishing deal with a major publisher in 1988, transferring 100% of their composition copyrights for a $25,000 advance. Over the next 30 years, those songs generate $2 million in mechanical and performance royalties, all collected by the publisher.

In 2023 (35 years after the 1988 transfer), the songwriter serves a notice of termination on the publisher. The notice is recorded with the US Copyright Office. On the effective date specified in the notice, all copyright ownership reverts to the songwriter. From that date forward, the songwriter (or their new publisher) collects 100% of the royalties. The original publisher keeps the money earned before the termination date but loses all future income from those songs.

This is not hypothetical. Artists like Bruce Springsteen, Bob Dylan, and Billy Joel have all used termination rights to reclaim ownership of their early catalogs. Between 2013 and 2028, thousands of songs from the 1978 to 1993 era become eligible for termination.

Why It Matters for Independent Artists

If you signed a publishing deal, work for hire agreement, or any copyright transfer after January 1, 1978, you may have a termination right you do not know about.

Track your transfer dates. If you signed a publishing or copyright transfer agreement 30 or more years ago, your 35-year window is approaching. You must serve notice between 25 and 10 years before the termination date. Waiting too long means losing the right permanently.
Do not assume your contract is final. Even if your contract says the transfer is "in perpetuity" or "irrevocable," federal law overrides that language. The termination right cannot be waived.
Consult a copyright attorney. Terminating a transfer requires precise legal paperwork, correct notice timing, and filing with the Copyright Office. An attorney who specializes in music copyright termination can handle this process and ensure you do not miss deadlines.
If you are signing a new deal, understand what you are giving up and for how long. The other party knows your termination right exists. Some publishers now structure deals to work around it, such as requiring you to grant a new license just before the 35-year mark. Have your attorney review any such provisions.

Read our guide on music copyright basics and music contracts every artist needs to know for more on protecting your rights.